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BPI 600 Business Process Management

Published : 17-Sep,2021  |  Views : 10

Questions:

1.What is a Business Process?
 
a.Compare and contrast the categories of processes in an organization (e.g. core, support, management, governance).
 
b.Why do you think it is important to categorize processes in this way?
 
2.What is Business Process Management? (Define BPM in your own words after finding at least two different sources)
 
a.What is a Business Process Management System? (Define BPM in your own words after finding at least two different sources)  -- make sure you note the difference between a BPM and a BPM system?
 
3.Find a case where a company adopted BPM and explain what their motivations were for BPM implementation?
 
a.After reading this case how did the organization define BPM? What was the scope of their BPM initiative?
 
4.What are the benefits of BPM?
 
5.What do Business Rules and Business Processes have in common?
 
6.Read the following statement:       Linda Sharp has come to you for help. Her boss has asked her "what is this BPM hype that I keep hearing about? I don't understand... it seems to be the same as other concepts that have been around for a long time such as Six Sigma, TQM, Lean Management and others.  What is different with BPM?  What will it do for me?"
 
a.Research these topics and provide an answer for Linda - specifically, answer - What is different about BPM today and why should an organization pursue it?

Answers:

1.Business Process

a.Compare and contact of the business processes 

Becker et al. (2013) describes that business process is a method which is a collection form of organizational structured activities and serve a particular goal. Each section can be visualized as a pictorial representation of the sequence of activities with relevance rules based on data. The business process can be categorized as core business, corporate law, management and corporate governance. The core business process is selection of those business processes which on accomplishing can provide a certain level of consistency in business outcomes. The business process considers only the human resources and their rights, relations and conduct of persons (Fleischmann et al., 2014). Unlike core business process, corporate law emphasizes on the community and the environment of the business and how people interact with one another. The business process of management focuses on business innovation, marketing, quality and maintenance of management and information system.  However, the corporate governance process is the utilization of rules to manage BPM programs and initiatives and it emphasizes on the board of directors, supervisory board, audit committee and advisory board (Rademakers, 2012). The difference with corporate governance and other selected business processes is that corporate governance deals with policies, roles, responsibilities and processes and should be aligned to a defined standard. On the other hand, the remaining business process should adhere to all those rules for performing other business functions.

b.Importance of categorization of business process

The importance of categorization of process is important because it divide the entire task into smaller modules that can be handled effectively. Jeston and Nelis (2014) stated that categorization of things not only make the accomplishment of the task effectively but also make the process easy to evaluate at every department. Taken for instance, the core business can also be sub-categorized into further parts like distribution and logistics, ICT services, engineering, marketing, sales, administrative and management functions.  Each of these functions are under the supervision of a manager who furthermore assess the functionalities of several department associated with each mentioned sub-categories (Becker et al., 2013). The manager is liable to prepare report on each of the sub-categorized department’s performance. Additionally, in case of management, resource management or human resource management can be taken into consideration, which is liable to maintain the availability of resources and managing people, who can work collaboratively to obtain the organizational objectives. However, in corporate governance especially in the United States, there are regulations like American corporate directors‎, U.S. Securities and Exchange Commission‎, National Association of Corporate Directors and United States corporate law‎. These regulatory bodies set the rule for business and that the leaders if the company has to aligned with their business process. Rosemann and vom Brocke (2015) depicted that these job roles cannot be performed by a person, who is liable to evaluate only human resources and thus division of business process is important.

2.Business process management 

Dumas et al. (2013) stated that a business process management (BPM) is a methodical workflow that ensures the operation functionalities of an organization will be accomplished effectively and they will be able to adapt new changes as per as the changing demands of the market and technological requirement. Roglinger et al. (2012) furthermore stated that BPM is used by business experts in the time of crisis in order to assess whether or not their business tools and approaches are effective enough to overcome the crisis. Moreover, some experts argued that BPM is a study of identifying change and assess business processes for ensuring the capability to improve over time. A successful business involves focusing on final business outcome and designs the entire business process in such a way in order to maintain the focus for attaining greater profitability.  It also become obligatory for a business to distribute the ownership so that every process can be completed effectively and can make the existing process effectively BPM also pays their role in easy understanding with the business processes, reducing errors and mitigating risks. Thus, it can be said that BMP is a combination of planning, automating the process, implementing and execution of the same for optimizing the business process.

Additionally, the difference between BPM and BPM System illustrates that BPM refers to the entire business process; while, BPM system ensures the smoothness of the workflow on a day basis. Leading companies follows BPM system considers process agility for both process creation and process execution, rule capabilities that defines the intelligence behind BPM, performance and scalability, time- to- value and industry leadership (Fleischmann et al., 2014). Taken for instance, a pharmacy utilizes a BPM system to align their existing business process with the new healthcare law so that all their patient’s details can be safeguarded. On the other hand, BPM refers to the planning for implementing BPM system for the betterment of the entire pharmacy process.  

3.Case where a company adopted BPM and motivation for BPM implementation 

The organization that is taken into consideration is The Kroger company, an American retailing company and is also the twenty-third largest company in the United States (Thekrogerco, 2017). The concerned company is the first largest company in revenue in US and they operate convenience store, supermarket store and other specialty supermarket. Recently, they faced a challenge related to evolving consumer expectations in area of e-commerce and regulatory requirements. Chang (2016) depicted that implementing e-commerce need planning for ecommerce business, effective technology selection, customer acquisition, customer engagement, customer retention, optimizing key metrics, business analysis and customer insights. However, the implementation also needs budget and adherence of several e-commerce legislations to provide the right information at the right time. The organization also intends to deliver quality product data and accountability for accurate and complete product information to their customers.

In order to overcome their challenge the concerned organization implemented 1WorldSync’s industry solutions for data accuracy scorecard and product introduction (1WorldSync, 2017). This solutions is facilitates efficient collaboration between data recipient and suppliers. They have also implemented the process of Vendor Item Portal (VIP) along with the Global Data Synchronization Network (GDSN™) and 1WorldSync’s Data Accuracy Scorecard (DAS) (1WorldSync, 2017). All these technology supports Kroger’s operational systems. The authority have taken this initiative for implementing e-commerce services so that their customer can get products as per as their convenience. They have also considered Global Product Classification (GPC) mapping, program management and community enablement to ensure the all-around success of the initiative (1WorldSync, 2017).

4.Benefits of Business Process Management 

According to business experts effective business process management allow an organization to compete in global terms. An effective BPM can offer improve customer service, enhancement in business innovation and greater operational efficiency. Some of the listed benefits of a business process management are:

  • BPM allows managers to assess, control and respond to the business process and coordinate these processes with the ability of the staffs for better productivity. Mangers can also implemented IT solutions directly to the business for increasing the efficiency of the business.
  • BPM can easily incorporate with Continuous Process Innovation (CPI) process like Six Sigma and Lean along with BMP technology in order to optimize the business process. This incorporation of BPM and lean and six sigma technology ensures the enhanced business productivity and profitability with three business elements- agility, visibility and efficiency (Gong & Janssen, 2012).
  • BPM makes the existing business process flexible and thus, it s easy to implement any technological or operational updates in the process. Thus, challenges faced by organization to implement change can be minimized with an efficient BPM (Becker et al., 2013).
  • This management also facilitates business automation with regular workflows. The functions that can be handled through BPM are introduction of parallel processing, removal of bottleneck and elimination of repeated steps. Since all the crucial functions are handled through business automation, employee can also focus on other activities like business innovations (Stark, 2015).
  • BPM can also help organization to save business resources and formulating better- designed process. Thus, this management also enhances visibility through the business process and hence reduces the risk of fraudulent as staffs can easily identify the adversity at the initial stages.
  • BPM is also known for eliminating red tape in organization that is employee do not have to give their time on reparative work and can give their 100% time to their designated job roles and responsibilities.

5.Similarity in Business Rules and Business Processes 

Scheer (2012) stated that business rules and business process are the subparts of BPM. Rules under business jurisdiction are referred to as business rule; while business process is an approach that follows all the legislations of the business jurisdiction in order to achieve their business goals.  Business rules defines workflow descriptions, tacit knowledge and decision tables that managers considers for continuing the business process. This can also be said that business rules serve to change the business process. However, Van Der Aalst (2013) argued that both the business process and business rules designated decision points in the entire approach. Thus, both the factors help in the betterment of the process that is to identify the recent requirement and market demand and then implement the same in the business operational functionalities.  

6.BPM today with theories and reason to pursue

Business process management is a process to identify the need of an organization that they have to change in order to meet new requirement of the customer and market. Six Sigma is utilized in a business for enhance the profitability. Experts believed that profits can be increased by making customer happy and that can be made achieved through upgrading the quality of the products. However, Hilton and Sohal (2012) argued that sometime frequent variation and consistency of the products make the customer unhappy and they started not preferring the brand for further purchase. The process for reducing defects in business started from Six Sigma and then the managers decided whether or not the process needs automation for eliminating some repetitive steps. The next process that the BPM follows is Business process re-engineering (BPR). BPR comprises of four steps that are identifying the process of demand followed by reviewing, updating and analyze the process (Ahmadi & Abadi, 2016). The process is then followed by future design and test and implementing the developed product.

 

Image 1: Business process re-engineering (BPR)

(Source: Ahmadi & Abadi, 2016)

Ahmadi and Abadi (2016) stated that Business process re-engineering (BPR) is a continuous improvement or TQM movement. TQM on the other hand describes the long term success of an implemented process that can attain customer satisfaction. The total quality management (TQM) emphasizes on improving processes, services and products along with the culture that the organization is following (Dale, 2015).

Lastly, a concept known as BPM hype covers all these theories in one graph that allows an organization to follow the demand of the customer by not compromising in the quality of the products.

References

1WorldSync. (2017). The Kroger Company - 1WorldSync. [online] Available at: http://www.1worldsync.com/customer-page/kroger/ [Accessed 27 Oct. 2017].

Ahmadi, A. A., & Abadi, S. H. F. (2016). Business Process Re—Engineering (BPR).

Becker, J., Kugeler, M., & Rosemann, M. (Eds.). (2013). Process management: a guide for the design of business processes. Springer Science & Business Media.

Becker, J., Kugeler, M., & Rosemann, M. (Eds.). (2013). Process management: a guide for the design of business processes. Springer Science & Business Media.

Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC Press.

Dale, B. (2015). Total quality management. John Wiley & Sons, Ltd.

Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business process management (Vol. 1, p. 2). Heidelberg: Springer.

Fleischmann, A., Schmidt, W., Stary, C., Obermeier, S., & Brger, E. (2014). Subject-oriented business process management. Springer Publishing Company, Incorporated.

Gong, Y., & Janssen, M. (2012). From policy implementation to business process management: Principles for creating flexibility and agility. Government Information Quarterly, 29, S61-S71.

Hilton, R. J., & Sohal, A. (2012). A conceptual model for the successful deployment of Lean Six Sigma. International Journal of Quality & Reliability Management, 29(1), 54-70.

Jeston, J., & Nelis, J. (2014). Business process management. Routledge.

Rademakers, T. (2012). Activiti in Action: Executable business processes in BPMN 2.0. Manning Publications Co..

Röglinger, M., Pöppelbuß, J., & Becker, J. (2012). Maturity models in business process management. Business Process Management Journal, 18(2), 328-346.

Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management (pp. 105-122). Springer Berlin Heidelberg.

Scheer, A. W. (2012). Business process engineering: reference models for industrial enterprises. Springer Science & Business Media.

Stark, J. (2015). Product lifecycle management. In Product Lifecycle Management (Volume 1) (pp. 1-29). Springer International Publishing.

Thekrogerco. (2017). The Kroger Company. [online] Available at: https://www.thekrogerco.com/ [Accessed 27 Oct. 2017].

Van Der Aalst, W. M. (2013). Business process management: a comprehensive survey. ISRN Software Engineering, 2013.

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